New year, new Netflix price hike. It’s like clockwork. Every year, Netflix ups its prices. And yep, they’ve confirmed another hike is coming. They spilled the beans in their quarterly earnings report on Tuesday.
Netflix had a message for shareholders. They said, “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service.” Makes sense, right?
Now, here’s the thing. Netflix had previously promised no price hikes until mid-2024. But, they’ve been on a roll. They added nearly three million subscribers in the US and Canada at the end of 2023. Their total? A whopping 260 million subscribers. So, they might feel they’ve got the momentum to raise prices again.
Big news alert! Netflix just dropped $5 billion on WWE’s Monday Night Raw. Yep, you read that right. They announced the deal with WWE on Tuesday. It’s a 10-year deal, worth about $500 million per year for a single 3-hour TV show. Pretty sweet deal for WWE. But guess who’s footing the bill? Yep, us, the customers.
After the news broke, everyone started speculating. Netflix prices are going up again, aren’t they? Netflix has been splurging on original content, only to cancel a lot of it after one season. But this WWE deal? It’s a game-changer. Outside the US, Netflix will carry all the Premium Live Events like the Royal Rumble and Wrestlemania, plus the entire library of WWE content. In the US, that’s all still on Peacock until at least March 2026. And in a few other countries where WWE has deals with other partners – like Sony in India.
This is a win-win for Netflix and WWE. WWE is moving from the USA Network, where it’s been for years, to Netflix. This means a bigger audience. Netflix is in around 100 million households in the US, while the USA Network is in about half of those. Especially with cord-cutting becoming more popular. WWE is already huge, but this deal could make it even bigger. For Netflix, it’s their first step into live sports. They’ve been wanting to get into this for a while but lost out on NBA rights and NFL Sunday Ticket.
But wait, there’s more. Netflix also announced they’re axing the “Basic” plan. The one that costs $11.99. It’s basically the ads plan but without ads. So, Netflix will now have three plans. The “Basic with Ads” for $6.99 per month, Standard at $15.49 per month, and Premium at $22.99 per month.
Here’s a fun fact. Netflix stopped letting new subscribers sign up for the Basic plan in Canada last year. So, we kinda saw this coming. The plan will be phased out for new and rejoining members. If you’re currently on this plan, you should be able to keep it, at least for now. Netflix says about 40% of all Netflix sign-ups are for the ads plan.